Always difficult, mixing family/friends and business. I always try to separate them as best as I can. In the beginning it was fun to work on as many sites as I could, so obviously a website for a friend or family member (even for free) was part of that. But that was the "hobby" period. As soon as it became business, it changes (it should!).
- I don't work for free in my business
- In case a family member or friend wants my help, the whole process is done exactly like it will be done for any other business (including contracts, normal rates, etc)
- Only really sporadic, for the best of the best of my friends or my closest family would I do something for free. Say my wife needs a website, of course I would not send her an invoice. But when I would do such work for free, I would very, very clearly explain that this act of friendship is just that, an act of friendship which I do in my free time, with no other obligations for both parties. And another thing to consider here is what the website is about exactly. If a close friend would ask me to build a blog for his/her wedding, I'd be happy to help him (even for free). But if he would ask me to build a website for his business (something he makes money with), it's in everybody's interest that I charge normally for that website.
As to your question "how would you feel". I would be happy for the friend if he found someone (else) to help him with his website. Once you have build many websites, in a few years time some of them will be redesigned/rebuild by others (hopefully not all of them ... ) that's just part of the medium.